Product Design
Kool Isn't Getting the Starters
Abstract
States Kool is no longer attracting new smokers [starters], while Newport is performing above market share. Suggests Kool's menthol levels are too high and proposes lower menthol levels with 12-14 mg tar be marketed to starters. Cautions reducing menthol levels in established brands to attract starters would result in catastrophic loss of franchise smokers and suggests a product geared toward starters may improve market share.
Fields
- Notes
Includes historic % menthol loading and market share by menthol brands.
- Author
- Cantrell, Dan V. (BW RD&E Brand Development Chemist)Defense
- Recipient
- Macdonald, I. David (B&W Marketing Dept. '85-'86)David Macdonald worked for B&W in the M Department in 1985 to 1986 as a Director of Brand Advertising, and Director of International Brands in 1986, and as Director of Established Brands from 1987 to 1988. He also worked in the MR Department as Senior Analyst in 1979, and was involved in the Executive Department in 1990. (Source: B&W's Initial Disclosure, State of Texas vs. ATC, et al., 6/5/96
- *Whitehair, Jr., Tom E. (use Whitehair, Tom E., Jr.)Vice President Corporate
- Kohnhorst, Earl E. (BW President of US Business)Earl E. Kohnhorst was the Director of Research for Brown & Williamson. (PMI's Introduction to Privilege Log and Glossary of Names, Estate of Burl Butler v. PMI, et al, April 19, 1996). In 1994, Kohnhorst was Executive vice president and chief operating officer of Brown & Williamson Tobacco Corp. (LAT 8/2/94). He was also vice president for research, development and engineering, BWT in 1985. (LAT 8/2/94). In a 1/17/85 memo, BWT Corporate Counsel J. Kendrick Wells said he had advised Earl Kornhorst, BWT's VP for research, development and engineering, on the need to prune scientific reports from his files. Wells marked certain reports with an X to designate those that were Deadwood in the behavioral and biological studies area. The Janus studies, secret program of biological research on the effects of smoking which showed tumor growth in animals, should be treated as deadwood. These documents should be segregated, boxed and put in the basement for possible shipment to BAT Industries in England, but no one should make any notes, memos or lists of the documents (LAT 8/2/94). Kohnhorst wrote a 4/26/85 letter re: carbon monoxide . It mentions development of Fact cigarette prototype which was designed to deliver low carbon monoxide. It describes shredded dried stems process which results in carbon monoxide reduction (E. Kohnhorst LT 4/26/85).
- Reynolds, Martin Lance (BW Director of Research)Also served as Director of Product Development.
- Riehl, Tilford F. Jr. (B&W R&D VP)Worked for B&W in the RD&E Department in Development in 1972, Polar Hexane Pyrolasate in 1967, Casing & Flavoring in 1970, and Applied Product Research from 1972-73. Worked as Flavors Supervisor in 1976, was Section Head of Brand Development in 1977, Product Division Head in 1979, and Division Head Product Development from 1980-85. Riehl was Group Development Director in 1985, Director of Research in 1985 and 1986, Director of Product Development in 1987 & 1988, was in the Quality Systems Department in 1990 and Divisional Vice President.
- Hendricks, Jim (Group Product Director; Divisional Vice President, Regional)1998 VP (1998)
- Tharaldson, Jan K.Defense
- Stowe, Robert (BW Brand Associate, M Dept. 1986-87)New Products Associate
- Kounnas, ChristopherDefense
- Hypothesis
- Behavior TargetingCigarette's effect of enhancing/mitigating specific behaviors
- Product design targets (women/minorities)Design changes targeting specific demographic segments such as women or minorities (slims/menthols/etc).
- Use of additivesModification of tobacco products through use of additives and measuring effects on dependence, behavior, and toxicity.
- Youth initiation/ youth productsDesign changes affecting youth smoking or encouraging young adults to become regular smokers.
- Keyword
- Consumer acceptability (Consumer preference)
- Flavor/ Taste (Attribute measure)
- Menthol delivery (Smoke menthol, menthol yield)
- Sensory response
- Tobacco taste (Attribute measure)
- Younger adult smokers
- Market (B&W marketing term)
- Additive
- Menthol
- Smoke Constituent
- Menthol
- Subject
- Menthol (Additives)
- Tar (Measures)
- Starter Products (Products)
- Target/Young Adults (Target Groups)
- Brand
- Kool (BW (1933-2003)/RJR (2003-present))First Menthol cigarette line, released in 1933. Premium priced brand.
- Kool 100
- Kool KS
- KOOL MILDS
- Newport (Lorillard)
- Salem (RJR)
Document Images
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BROWN & WILLIAMBON TOBACCO CORPORATION
RESEARCH, DEVELOPMEi~Fr & ENGINEERING
INTERNAL CORRESYONDENCE
TO: I.D. Macdonald
CC: T.E. Whitehair
E. E. Kohnhorst
M. L. Reynolds
T. F. Riehl
FROM: D.V. Cantrell
DATE: February 17, lgB]
SUBJECT: KOOL ISN'T GETTING THE STARTERS/236
J. Hendricks
J. Tharaldson
R. Stowe
C. N. KOLLnnas
This memo addresses the fact that KOOL is no longer attracting new
smokers (further referred to as "starters"), a product-related reason
which possibly explains this position~ and suggestions to correct this
problem.
Switching data (waves 32-&0, attached) clearly show that KOOL KS
and 100 are not attracting their fair share of starters. Newport~
on the other hand, is performing above its fair share. Besides the
differences in packaging and marketing between KOOL and Newport~ one
basic product difference exists which can possibly expialn part of the
reason for KOOL's disparity ~.ong starters. Basically, it is that
gOOL's menthol level is too high for starters. For a more in-depth
discussion abaut this fact, see Appendix A.
The dilemma is that K00L can't satisfy the needs of both starters and
current franchise. Franchise smokers prefer a product providing
greater menthol taste than do starters. This paradox isn't easily
corrected by just changing KOOL's menthol level, due to the
significant risk of losing franchise smokers. Thus, a more logical
approach is to:
l. promote KOOL MILDS as the starter brand,
2.
line extend the KOOL family with a product having --12-14 mg
tar with a lower menthol loading, eg., -0.3Z% menthol,
specifically to attract new smokers, or
3.
introduce a free standing new product having the same product
description as in (2) above.
6ZIOTD91
In s~ary, we can't reduce the menthol level of KOOL KS/IO0 to an
acceptable level for starters without risking a catastrophic loss
among our franchise. Thus~ to regain starters, we must establish
another product source.
D. V. C,
DVC/vr
0509h
Attachments
2 - 621079919
APPENDIX A
PRODUCT REASON FOE K00L'S DECLINE IN ATTRACTING STARTERS
From a ?roduet recipe standpoint~ I can understand why possibly
KOOL KS and 10Os are no longer considered to be acceptable starter
products, First, let's consider which smoking attributes are
important to a beginning smoker. Based on my o~a~ initial smoking
experiences and comments from other smokers about their early smoking
exgerie~ees~ the attributes are:
I. low tobacco taste (this is an acquired taste with use),
2. low impact and irrita=ion (a strong smoke is intolerable),
3.
low tobacco aEtertaste (heavy, dirty taste is intolerable),
and
4. if it's a menthol product, it should have a low amount.
Menthol brands have been said to be good star~er products because
new smokers apDear to know that menthol covers up some of the tobacco
caste and they already know what menthol £astes like, vis a-vis
candy. The level Of menthol in the product i$, however~ critical.
A product having a moderate to high menthol t~ste will usually be
rejected by starters, while the same level will be quite acceptable
to established menthol smokers. Indeed, this is the dilemma which
KOOL KS and lO0s face today,
In August 1985~ we inadvertently ~ade the situation even worse for
starters by increasing the menthol level of KOOL KS and 100s~ see
chart bel~. This ch~ge was adopted based ~p~ CPT res~i~s s~wing
a superior preference for the current recipe (havi~g 0.40 and 0.45~
menthol for KS and iOO's, respectively).
Newport~ having a lower menthol level~ O.32~, is better positioned ~or
starters than is current ROOL.
Table 1
~enthol hoadin~
Year KOOL KS KOOL 100
77 ,36 .38
78 .36
79 .36
80 .36
81 .36
82 .3~
83 .3~
8~ .34
85 ,3~, .40 (8/85) .38, .45 (8/85)
86 ,&0 ,45
in '~Z, the ~iter plasticizer o~ KQOL KS was ~hanged to ~ne whi£h allowed
a greater menthol dellvery. To maintain previous deliveries, the loading
was decreased by 0,0Z~.
6Z1079920
STgRTER DESZGNATZO~ BY BRAND FAHILY/STYLE
~SLIS~b~nS~LUd~da~L¢~ (32-33)
Total ~mokers 28,474
Total Starters 1,05]
(M/F, 21e years of age)
- Total Starters 51
of Total Starters 4.85~
- TOtal Starters
of Total Starters
- Total Starters
of TDtal Starters
26
2.47¢
8
.76~
~,u3Jzr~gJJ~ Total StarLeTs 46
oF Total Starters 4.38~
Total ~tarters 126
% of Tota~ Starters 11.99%
(FAIR
SHARE
{FAIR (FAIR
SHARE SHARE
i LP~ i Zt~ i
(34 35) (36 ~7) (38 3g)
28,206 27,I~9 26,755
1,001 933 911
37 34 41
(80) 3.70~ (63) 3.64¢ (68) 450%
16 16 15
(76) 1,60% (56) 1.72% (6B) 1.65¢
5 6 2
(8O] .50~ (47] .6q~ (SG) ,22~
39 36 43
(223] 3.go~ (IBg] 3.86~ (1671
4,72~
93 86 77
(127) 9.29~ (102) 9.23~ (104)
8,45~
IFAIR
SHARE
(BB)
(FAIR
~HARE
(40)
12,&80
324
5
] .54~ (32)
3
(68) .93%
2
(25) .62%
9
2,78%
37
(g2) 11,42%
(67)
(124]
{123)
1Fair Strafe Index of } ioo = Growth, attract(ng more than brand's share of smokers.
Fair Slla)'e Inde>C Of 100 = parity, Ilttracting equal to bFand'$ ~hare of
srilOke~-s,
Fair ~hare Index o? ( 100 = LOSS. attracting le$$ than brand's share oF smoker~,
p~
C~
[~ 0509h
